Google's fiber experiment could disrupt broadband landscape

Google Inc.’s announcement that it plans to work with a few local municipalities to build high-speed broadband networks has the potential to change the broadband landscape in the United States, according to analyst Craig Settles, founder of Successful.com, which advises companies and government agencies on broadband strategies.
“This one got my heart racing. Google is hitting for the stars,” Settles commented.
On its blog yesterday, the Internet search giant announced plans for a broadband experiment using fiber technology. The company did not mention a wireless component to its tests, but Google has been aggressive in the wireless space in the last few years so it stands to reason wireless could be considered in its plan as it develops.
“We’ve urged the FCC to look at new and creative ways to get there in its National Broadband Plan – and today we’re announcing an experiment of our own,” Minnie Ingersoll and James Kelly, Google product managers, posted on their blog. “We’re planning to build and test ultra high-speed broadband networks in a small number of trial locations across the United States. We’ll deliver Internet speeds more than 100 times faster than what most Americans have access to today with 1 gigabit per second, fiber-to-the-home connections. We plan to offer service at a competitive price to at least 50,000 and potentially up to 500,000 people.”
Google said it wants to test to see if how developers react to high-speed networks, i.e., if developers will make next-generation killer applications, as well as test deployment techniques and open access theories and choices for service providers. The company has been extremely vocal about open access, so much so that it steered the Federal Communications Commission to require open access as a component of the 700 MHz auction. Ultimately, Google didn’t bid enough to win any wireless spectrum (Verizon Wireless ended up winning that spectrum) but Google changed the course of the auction.
Settles thinks the same type of thing could happen with President Obama’s broadband initiative. “Google has the money to move the process forward. I don’t expect Google to be a broadband service provider or even a builder,” Settles said. Instead, it will find partners to implement the networks, but the test bed likely will show the government how high-speed broadband networks can be built and operated.
The experiment also could be disruptive to telecom carriers like AT&T Inc. and Verizon Communications Inc., as well as cable companies, which all offer broadband services. Telcos have said governments need to stay out of the broadband business, but Google is courting them through this experiment, Settles pointed out.
Communities looking to bring broadband services to their regions should consider a hybrid approach that uses fiber in denser urban corridors paired with wireless services like LTE and WiMAX in other areas. “Everyone is looking for a great project, but a good project that can be expanded later and pay for itself will impact more people for the money spent.”